Government Clears 5 FDIs Worth Rs 6,050 crore

Published: 15th January 2016 05:30 AM  |   Last Updated: 15th January 2016 05:41 AM   |  A+A-

NEW DELHI: The government on Thursday approved five foreign investment proposals involving an inflow of Rs 6,050 crore including a Rs 5,000-crore plan of Cadila Healthcare for fresh equity infusion.

Cadila will infuse equity of up to Rs 5,000 crore through issue of shares to QIBs through Qualified Institutional Placement for expansion.

“Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on December 21, the government has approved five proposals of FDI amounting to Rs 6,050.10 crore,” an official statement said here.

The company was given approval for the transfer of its 99.90 per cent shares currently held by an NRI to Wellness Technology and Media Private Ltd, UK.

The other major proposal approved was of Recipharm Participation BV for incorporating a wholly-owned subsidiary in India. The pharma firm’s proposal worth Rs 1,050 crore also included buying out promoter stake in Nitin Lifesciences and increasing FDI to 74 per cent.

Also approved was Buimerc Core Investments Pvt Ltd proposal for transferring of 100 per cent equity shares of NRI investors and Resident Investors to Buimerc Corporation FZE. The proposal involves Rs 10 lakh of FDI.

The government also approved Health Media Publishing’s proposal to transfer its 99.90 per cent shares by NRI Ajit Patel to Wellness Technology and Media Ptv Ltd, UK.

The FIPB, however, deferred six FDI proposals. These include the proposal of Raheja QBE General Insurance Company for transfer of 23 per cent equity held by Prism Cement to QBE Asia Pacific Holdings Ltd, Hong Kong, thereby increasing the foreign shareholding in the company from 26 per cent to 49 per cent.

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